04 February 2013 11:27 [Source: ICIS news]
LONDON (ICIS)--INEOS's vinyl acetate monomer (VAM) plant in Hull, UK, is operating after technical problems which led to force majeure being declared, a company spokesman said on Monday.
“I can confirm that the VAM plant is running”, the spokesman said, without commenting on whether the force majeure was still in place.
INEOS declared force majeure on VAM supplies from the 300,000 tonne/year plant in late December, with customers being placed on supply allocation.
INEOS had said that the force majeure declaration was the result of a technical problem with a reactor, a buyer said in early January, and had indicated that the problem could take up to 40 days to resolve.
Market sources said that the impact of the lost production had not been too severe during January, but expressed concern about what might happen if the plant did not return to normal operations in line with the timeframe originally suggested by INEOS.
Contract price increases of €30-35/tonne have been concluded for some February contracts, with the INEOS outage cited as the primary driver.
European spot prices were assessed by ICIS on 1 February in the range of €840-860/tonne ($1,151-1,178/tonne) FD (free delivered) NWE (northwest Europe).
($1 = €0.73)
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